Understanding VA Loan Closing Costs

VA loan closing costs are very different from standard mortgage or loan costs. If you have a traditional loan, you will pay for closing costs. However, if you are a veteran, or an active member of the armed services, then you can use VA loans to reduce the amount of money that is required by the lender. With a loan or mortgage, the VA office can work to reduce the amount of money that is required for as closing costs. They try to offer the lowest fees possible.

Using VA Loan Closing to Reduce Costs

If you want to get low fees on your VA loan, then you should consider taking a slightly higher interest rate. That is, do not attach additional discount points to reduce the interest rate. Instead, use the 0 discount point loan.

Costs That Will be Charged

Even though you may not be charged for certain aspects of the loan, you will still have to pay some costs. This include, but are not limited to:

  • Appraisals and inspection of the property
  • Loan recording fees
  • Credit report, these are usually done through another company so the costs will vary
  • Insurance, hazard insurance is required
  • Nominal origination fee charges
  • Escrow and title fees
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